Cases

Preparing a Corporate and Business Unit Strategy for a Chemicals Company

Challenge

The client, a chemicals company was facing the following challenges:

  • Absence of clearly defined vision and values
  • Stagnant turnover and declining net profits over the last 2 years
  • Absence of a long term corporate and business unit strategy
  • Lack of industry leadership in any product
  • Weak marketing set-up
  • Lack of customer focus
  • Eroding market share
  • Weak HR function resulting in sub-optimal utilisation of employees’ skills
  • Absence of a clear career growth plan
  • Low morale of employees
  • High employee turnover in the marketing department (43% in the last year)
  • Unclear roles and responsibilities at all levels
  • Poor inventory management
  • High level of receivables (more than 6 months)
  • Poor customer service due to the complexity of the order fulfillment process.

Our Approach

To prepare the corporate and business strategy for the client, UC adopted the following approach:

  • Defined the vision and values for the company
  • Determined the businesses that the company should seek dominance in
  • Prepared a phase-wise implementation plan
  • Designed an organisation structure with a well defined job description for each position
  • Designed a performance evaluation system for the company and linked it to compensations and promotions
  • Initiated an Inventory Reduction Program and Accounts Receivable Program
  • Redesigned the business processes in the organisation with a focus on customer satisfaction
  • Examined co-location opportunities to obtain the following benefits:
    • Manpower Savings
    • Lower cost of production
    • Simplicity in planning activities
    • Improved communication.

Impact

Based on UC’s recommendations, the client managed to achieve a 57% reduction in the number of activities and 50% reduction in the number of entities involved in the Order Fulfillment Process. The client received a clear corporate and business unit strategy and requested UC to undertake a 4 month Corporate Strategy engagement and a 2 month Organisation Design engagement